diff --git a/electrum/wallet.py b/electrum/wallet.py
index 178540f94..13ab15d32 100644
--- a/electrum/wallet.py
+++ b/electrum/wallet.py
@@ -521,9 +521,10 @@ class Abstract_Wallet(ABC, Logger, EventListener):
         if not self.txin_type == 'p2wpkh':
             return False
         if self.config.ENABLE_ANCHOR_CHANNELS:
-            # exclude watching-only wallets
             if not self.keystore:
                 return False
+            if self.keystore.is_watching_only():
+                return False
             # exclude hardware wallets
             if not self.keystore.may_have_password():
                 return False